First-Time Sponsor Deal Interest ($5mm - $6mm of equity need)
November 14, 2025
by a searcher from Harvard University - Harvard Business School in New York, NY, USA
I have a deal under LOI.
+ High level summary is $3mm EBTIDA (~25% margins) for $16.5mm PP (5.5x EBITDA).
+ Multi-location B2B business that has been around for ~20 years, strong repeat revenue, and strong growth potential (we see a pathway to $4-5mm annual EBITDA in base case). We also have a strong relationship with the sellers (it's off market)
+ We are putting $6mm of conventional debt (2x ebitda) on it and ~$4mm-$5mm of seller note (1.5x ebitda)
+ We need about $5mm to $6mm of equity but under a long-term hold structure = 10% - 15% sponsor equity to 2x MOIC --> 20% - 25% sponsor equity to 3x MOIC --> 30% - 35% sponsor equity to 4x MOIC and above 4x MOIC, 70% sponsor equity, LP retains 30% equity. We'd like to run the business for the long-term.
This is not an SBA deal and probably best for institutional equity with long-term philosophy. We are a first time sponsor group so access to family office capital is somewhat limited.
+ If there's interest in something like this as an investor, please let me know in comments and I'll reach out.
+ Or if you know of long-term investment groups to connect with, also please let me know in comments
from Massachusetts Institute of Technology in Portland, OR, USA